Full Year 2026 Judo Capital Holdings Ltd Earnings Call Transcript
Key Points
- Judo Capital Holdings Ltd (JDCHF) delivered a 34% increase in profit before tax and a 29% rise in net profit after tax, with EPS up 29% to $0.099.
- Net interest margin (NIM) improved by 20 basis points to 3.13%, exceeding expectations and aligning with long-run assumptions.
- Cost-to-income ratio improved significantly to 45.3%, the lowest in the sector, demonstrating strong operating leverage.
- Deposit franchise grew strongly, with deposits funding all lending growth and new at-call savings products exceeding expectations.
- Capital position remains robust with CET1 ratio of 12.4%, above the target range, and a successful capital relief term securitization added 60 basis points to capital.
- Impairment expense increased to $118 million (88 basis points of average GLA), driven by specific provisions on three exposures, including a large customer group.
- 90+ days past due and impaired assets rose to 2.9% of GLA, reflecting the impact of the larger impairments.
- The company acknowledged that the June provisions were 'disappointing and unacceptable volatility,' leading to a review and changes in credit processes.
- FY27 cost of risk guidance is expected to be broadly consistent with FY26, indicating continued elevated provisioning levels.
- NIM is expected to be broadly stable in FY27, with term deposit margins normalizing and lending margins facing competitive pressure.
Good morning, and welcome to the Judo Bank FY26 results webcast. We appreciate everybody accommodating the slightly delayed start time this morning. It has turned out to be a busy day on the market. My name's Andrew Dempster. I'm the GM of Strategy and Investor Relations at Judo Bank.
I'd like to begin by acknowledging the traditional owners of the land from which we are all joining today. For our agenda this morning, we're first going to hear from CEO, Chris Bayliss, with an overview of our performance and some discussion on our portfolio. Our CFO, Andrew Leslie, will then run through detailed financials, and Chris will return to discuss our strategy and outlook. We will then open the lines for Q&A.
On that note, I'll now hand to Chris.
Thank you, Andrew, and good morning, everyone. Look, it won't
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